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Home My WebLink About1832 KuzmaPHONE: 717--783-1610 TOLL FREE: 1-800-932-0936 In Re: Andrew Kuzma, Respondent STATE ETHICS COMMISSION FINANCE BUILDING 613 NORTFI STREET, ROOM 309 HARI-RISBURG, PA 17120-0400 File Docket: Order No. Date Decided: Date Mailed: 22-0003-1 1832 4/9/24 4/12/24 Before: Michael A. Schwartz, Chair Rhonda Hill Wilson, Vice Chair David L. Reddecliff Thomas E. Leipold This is a final adjudication of the State Ethics Commission. FACSIMILE: 717-787-0806 WEBSITE: www.eV1jGS.pa.qov Procedurally, the Investigative Division of the State Ethics Commission conducted an investigation regarding possible violation(s) of the Public Official and Employee Ethic's Act ("Ethics Act"), 65 Pa,C.,S. § 1101 et sue, by the above -named Respondent. At the commencement of its investigation, the Investigative Division served upon Respondent written notice of the specific allegations. Upon completion of its investigation, the Investigative Division issued and served upon Respondent a Findings Report identified as an "Investigative Complaint." A Stipulation of Findings and a Consent Agreement were subsequently submitted by the parties to the State Ethics Commission ("Commission") for consideration. The Stipulated Findings are set forth as the Findings in this Order, The Consent Agreement has been approved. 1. ALLEGATIONS: That Andrew Kuzma, a public official in his capacity as a Commissioner on the Elizabeth Township Board of Commissioners, Allegheny County, violated Sections 1103(a), I 104(a), 1105(a), 1105(b)(1), 1105(b)(8,), and 1105(b)(9) of the Ethics Act: (1) When he participated in actions including, but not limited to, when he voted to approve the issuance/refunding of two bonds for Elizabeth Township which included payments to Gary Matta of Dodaro, Matta & Cambest P.C., a business from which he was seeking and subsequently accepted employment; (2) When he filed deficient Statements of Financial Interests ("SFIs") for calendar years 2017, 201.8, and 2019 by failing to list his employment in any business; Kuzma, 22-0003-1 Page 2 (3) When he filed a deficient SFI for calendar year 2018 by failing to marls that he was amending an original filing; (4) When he filed deficient SFls for calendar years 2020 and 2021 by failing to list his public position and governmental entity, and by failing to answer whether he had any financial interest in any legal entity engaged in business for profit; and (5) When he failed to timely file an SFI for calendar year 2020 and subsequently backdated that filing to give the impression that the form was timely filed. II. FINDINGS: 1. Andrew Kuzma ("Kuzma") served as a Member of the Elizabeth Township ("Township") Board of Commissioners ("Board") from January 4, 2016, until December 23, 2021. a. Kuzma served as Board President from January 7, 2019, until January 6, 2020. b. Kuzma voluntarily resigned as a Township Commissioner on December 23, 2021. 1. Kuzma resigned due to not residing in his elected ward. 2. The Township is a First -Class Township governed by a seven -Member Board of Commissioners. a. The Township is comprised of seven wards with one Commissioner elected or appointed to represent each ward. 1. The Commissioners must live in the wards which they represent. b. Kuzma was compensated for his service in the amount of $314.76 monthly after taxes. 3. The Board holds regularly scheduled meetings on the first and third Monday of each month. a. The first meeting of the month is the Board's voting meeting. b. The second meeting .of the month is the Board's workshop meeting. C. The Board holds special meetings as necessary. 4. Voting at Board meetings occurs either via "aye/nay" group vote or individual roll call vote after a motion is properly made and seconded. a. Voting involving routine procedure issues is conducted via group consent vote. Kuzma, 22-0003-I Page 3 b. Voting involving controversial issues, issues on which significant discussion occurs, or spending of funds is routinely conducted in roll call fashion. 1. During a roll call vote the Board votes in numeric order by ward with the president voting last. C. Abstentions or objections are specifically noted within the meeting minutes. S. Minutes of both voting and workshop meetings are presented and reviewed at the subsequent voting meeting. a. A formal vote is taken to approve/accept the minutes. b. Acceptance of the minutes signifies the accuracy of the minutes. 6. Commissioners are provided with a meeting packet via Google shared drive. a. The Township Manager is responsible for determining the contents of and compiling the meeting packet for issuance. 1. Commissioners may add items to the meeting packet by notifying the Township Manager of the desired additions. 2. The Township Manager uploads the PDF version of the documentation for the meeting packet to the Google shared drive. 7. The meeting packets routinely consist of the bill warrants (with the invoices attached), a spreadsheet of the Township budget versus the actual, various department reports, correspondence, supporting documents, the previous month's meeting minutes, agenda, etc. a. The Commissioners review separate bill warrants for the Township general fund and the Sanitary general fund. 1. The bill warrants are put together throughout the month and typically are completed the Thursday or Friday prior to the Board meeting. 8. The Board conducts separate votes on the respective bill warrants at each meeting. a. The Township issues manual checks for all expenses incurred with the exception of payroll, utility bills, insurance, water, and computer/software related items. 1. Repetitive bills and payroll are on the respective bill warrants but are paid when they are due via direct deposit or online billing services. Kuzma, 22-0003-I Page 4 9. Signature authority over the Township's accounts is maintained by the Board President, the Board Vice President, and the Township Treasurer. a. Township checks require two signatures. 1. One signature must be a live signature of the Township Treasurer. 2. The second signature may be that of either the Board President or the Board Vice President. aa. The Board President and the Board Vice President have signature stamps authorized for use by the office staff. 10. in Pennsylvania, municipal entities may issue bonds for the purposes of funding day-to- day obligations, financing capital projects, and refunding existing debt. a. The two most common types of municipal bonds are general obligation bonds and revenue bonds. 1. General obligation bonds can be issued by a state or local government and are payable from the general funds of the issuer. aa. General obligation bonds are backed by the full faith and credit (and the taxing power) of the issuer. 2. Revenue bonds are payable from a specific source of revenue. aa. Revenue bonds are backed by a specific project or source, not the issuer's taxing power. 11. Municipal bonds once issued can be refunded to reduce the issuer's interest costs or to remove a restrictive covenant imposed by the terms of the bonds being refinanced. a. Refunding entails a procedure whereby an issuer refinances outstanding bonds by issuing new bonds. 1. The proceeds of the new bonds are either deposited in escrow to pay the debt services on the outstanding bonds or used promptly to retire the outstanding bonds. b. The new bonds are referred to as the "refunding bonds." C. The outstanding bonds being refinanced are referred to as the "refunded bonds" or the "prior issue." Kuzma, 22-0003-I Page 5 12. The issuance of municipal bonds involves the participation of multiple individualslentities, including but not limited to the issuer, solicitor, bond counsel, financial advisor or underwriter, trustee or paying agent, and credit enhancer as detailed below: a. Issuer: undertakes the financing for the purpose of financing capital projects or for the purpose of refunding existing debt; 1. The issuer of the bonds has the final decision as to who is used as the underwriter, trustee, bond counsel, and co -bond counsel. b. Solicitor: represents the issuer in the financing and presents a legal opinion at the closing which routinely addresses the following: 1. That the issuer is validly existing; 2. That the issuer's officers validly hold their offices; 3. That the public meeting at which the bond issue was approved was properly called and held; and 4. That there is no material litigation pending against the issuer which would adversely impact upon the bond issue. G. Bond Counsel: Attorney or firm retained by the issuer that specializes in public finance to work with the solicitor on the legal aspects of the bond issue. 1. Bond counsel cooperates with the issuer and the financial advisor or underwriter in structuring the transaction, with particular emphasis on legal matters related to state law approvals and compliance with the federal tax and securities laws. 2. Bond counsel also provides an opinion at the closing which addresses the following: aa. That the issuer has properly authorized and issued the bonds; bb. That the bonds are enforceable under the law; and cc. That interest on the bonds is exempt from federal income tax and certain state taxes (to the extent applicable). 3. Bond purchasers rely on the bond counsel opinion when purchasing the bonds. d. Financial Advisor or Underwriter: Kuzina, 22-0003-I Page b 1. Financial Advisor: The issuer may hire a financial firm to advise solely on the structuring of the bond issue and to assist the issuer in selling the bonds through a competitive bid process. 2. Underwriter: The issuer may hire an underwriter to perform both the functions of advising the issuer on the structuring of the bonds and marketing the bonds to purchasers. aa. The underwriter may make recommendations for bond counsel, co - bond counsel, and the trustee, but the Township does not have to adhere to any of the recommendations given. e. Trustee or Paying Agent: 1. Trustee: A financial institution with trust powers which may act as custodian, paying agent, registrar, or transfer agent for the bonds. 2. Paying Agent: A commercial bank selected by the issuer to make debt service payments once the bond issue has closed. aa. The paying agent is the entity responsible for transmitting payments of interest and principal from an issuer of municipal securities to the bondholders. f. Credit Enhancers: A third party entity utilized by the issuer to guarantee the bond issue. 13. The municipal bond process involves several accepted steps as detailed below: a. Selection of participants and structuring of the transaction including: 1. Identification of a project or existing debt to be financed by the bond issue. 2. Selection of bond counsel and, if desired, co -bond counsel as well as a financial advisor or underwriter by the issuer. 3. Collaboration between the issuer, solicitor, and participants to structure the financing: aa. Once structured, the issuer selects the paying agent or trustee and the credit enhancer, if any, and all participants begin to prepare all required documentation. i. The underwriter or financial advisor and the issuer prepare the disclosure document, typically referred to as the preliminary official statement. Kuzma, 22-0003-1 Page 7 ii. Bond counsel drafts the ordinance, resolution, or indenture and other legal documents. b. Marketing the bonds and the bond sale including; The distribution of the preliminary official statement by the underwriter to potential purchasers. aa. The marketing period typically runs for a period of one week. 2. The scheduling/conducting of a public meeting after the marketing period expires and at which time the bond sale is held. aa. if the issuer chooses a negotiated offering with one underwriter, the underwriter attends the meeting with a purchase proposal. A negotiated offer represents an agreed upon sale price having been reached in advance between the issuer and the underwriter. bb. If the issuer chooses an offering with bids from multiple underwriters, the financial advisor collects the bids on the day of the public meeting. The acceptance by the issuer of the purchase proposal at the public meeting via the adoption of an ordinance or resolution prepared by bond counsel. 4. The preparation and forwarding of the final official statement to the purchasers from the underwriter once the bond sale occurs with the participants subsequently proceeding towards closing. C. Department of Community and Economic Development ("DCED") approval and closing. 1. if the issuer is a municipal entity or school district, bond counsel prepares a packet to be filed with DCED in accordance with the requirements of the Local Government Unit Debt Act. aa. DCED has 20 days to approve the bond issue once filed. 2. Closing normally occurs approximately one month after the bond sale at which the participants execute the various closing documents. aa. After execution of the closing, the underwriter wires the purchase price for the bonds to the paying agent or trustee. Kuzma, 22-0003-I Page 8 i. At the issuer's direction, the paying agent or trustee pays the cost of issuance and applies the balance to the project or refund of the prior debt. ii. Cost of issuance includes, among other items, fees and other expenses of the participants, including bond and co -bond counsel (if applicable). 14. In 2002, the Township created the Elizabeth Township Sanitary Authority ("ETSA") to own and operate the Township's sewer system, to separate management of the sewer system from the Township operations and decrease municipal debt levels. a. In December 2013, the Township dissolved ETSA and absorbed all the assets, obligations, and liabilities of ETSA. 15. Following the dissolution of ETSA the Township began operating the Elizabeth Township Authority ("Authority"), which assumed all financial management and operations with the exception of ownership of the sewer system and liability for payments on the bonds previously financed through ETSA. a. The Authority's original Articles of Incorporation were filed at the Pennsylvania Department of State on February 16, 1940. b. The Township filed for a 50-year increase of the Authority with the Pennsylvania Department of State on October 15, 1958. C. A Continued Existence Report was completed for the Authority and filed at the Pennsylvania Department of State on April 21, 2003. d. On October 15, 2008, the Authority's 50-year term expired but no articles of termination were filed with the Department of State. e. On March 17, 2016, the Township officially dissolved the Authority and took control of all operations and maintenance of assets comprising the sewer system. 16. The Township and ETSA have a history of municipal bond issuances spanning the date range of 2003 through 2019 as follows: a. The Township and ETSA were each involved in the issuance of four separate bonds over the noted date range. 1. Elizabeth Township Bond/ Issuer Bond Amount Series of2011 Township $2,130,000 Kuzma, 22-0003-I Page 9 Series of 2017 Township $1,885,000 Series A of 2019 Township $7,800,000 Series B of 2019 Township $8,345,000 2. ETSA Bond/Issuer Bond Amount Series of 2003 Sanitary Authority $9,165,000 Series of 2008 Sanitary_Authority $5,000,000 Series of 2009 Sanitary Authority _$8,000,000 Series of2012 Sanitary Authority $15,925,000 17. Individuals and/or entities participating in the issuance/refinancing of bonds for the Township and/or ETSA over the range of 2003 through 2019 are detailed below: Bond/ Township, Solicitor Issuer Authority Counsel Bond Counsel Underwriter Co -Bond Counsel Series of 2003 RRZ Public Sanita!j Auth T S Barry & Assoc Klett RooneyMkts None Series of 2008 Pepper Boenning & Sanitary Auth T S Barry & Assoc Hamilton Scattergood None Series of 2009 Pepper Boenning & Sanitary Auth T S Barry & Assoc Hamilton Scattergood None Series of 2011 Grogan Boenning & Township J Jason Elash Graffam Scattergood None Series of 2012 Boenning & Sanitary Auth T S Barry & Assoc Reed Smith Scattergood None Series of 2017 Cozen Boenning & TownshipMatthew Racunas O'Connor Scattergood None Series A of 2019 Cozen Boenning & Dodaro Matta Cambest Township Racunas Law Group O'Connor Scattergood Series B of 2019 Cozen Boenning & Township Racunas Law Group O'Connor Scattergood Dodaro Matta Cambest a. Neither the Township nor ETSA used any co -bond counsel for any issuances/refinances from at least 2003 through 2017. 18. The law firm of Dodaro, Matta & Cambest P.C. ("DMC") serves a broad range of government and private clients in diverse matters. Kuzma, 22-0003-I Page 10 a. DMC identifies itself as a full -service law firm with practice areas of municipal, criminal, property, oil and gas, employment, civil litigation, school and education, and family law. 1. Dodaro Cambest Associates P.C. is the owner of and does business under the name of DMC. aa. Dodaro Cambest Associates P.C. is identified as a Domestic Business Corporation by the Pennsylvania Department of State under entity number 3195096. bb. DMC is identified as a Fictitious Name entity by the Pennsylvania Department of State under entity number 7237154. 2. DMC serves as the Solicitor for multiple local municipalities and school districts in western Pennsylvania. b. Gary Matta ("Matta") is a partner in DMC. 1. Matta was admitted to the Pennsylvania Bar Association on June 16, 2003, 2. Matta has been an equity partner in DMC for the last eight to ten years. 19. DMC has maintained its office at 1900 Main Street Suite 207, Canonsburg (Southpoint), PA 15317 since approximately July 1, 2016. a. DMC has maintained a lease with Southpointe Town Center, L.P. for its office space since July 1, 2016. 1. DMC executed the initial lease with Southpointe Town Center, L.P. on July 1, 2016. aa. Matta signed the lease on behalf of DMC. 2. On September 2, 2021, DMC signed an amendment to extend the lease and reduce the rentable area of the premises by 1,282 rentable square feet beginning September 1, 2021. 3. On August 26, 2022, DMC signed a second amendment to extend the term of the lease by 38 full months, to reduce the rentable area of the premises by 696 rentable square feet, and to reduce the rent due. 20. Multiple accounts are maintained at PNC Bank by Dodaro Cambest Associates PC doing business as DMC. a. Accounts maintained include, among others, an IOLTA account and a payroll account. Kuzma, 22-0003-I Page I 1 The IOLTA account was previously maintained under a different account number. 2. Various deposits into DMC's payroll account are made via checks written from the DMC IOLTA account. 21. As of at least late 2018/early 2019, Joseph Muscatello ("Muscatello"), Managing Director, Public Finance, of Boenning & Scattergood initiated contact with the Township regarding potential interest in financial savings associated with the reissuance of existing bonds. a. Boenning & Scattergood was an investment bank. 1. Boenning & Scattergood had been used for bond underwriting services by the Township or ETSA since at least 2008. aa. Muscatello had been the point of contact for the Township since at least 1996. bb. Museatello has changed employers since 1996 but has retained the Township as a client. 2. Boenning & Scattergood is no longer in operation. 22. Museatello routinely monitors his client's debt and interest rates and subsequently runs an analysis for cost saving purposes when interest rates are favorable for savings. a. Muscatello routinely monitors for figures that will allow for a minimum 2.5% savings for his clients. b. When Muscatello identifies an opportunity for savings he initiates contact with his clients to determine their interest in moving forward with the process. 23. After Museatello's contact, the Township began consideration of the refinancing of the existing sewer bond debt with the issuance of new bonds. a. The parties ultimately involved in the 2019 bonds in addition to Boenning & Scattergood included: 1. Racunas Law Group as Township Solicitor. 2. Buchanan Ingersoll & Rooney as underwriter's counsel. 3. BNY Mellon as the trustee. 4. Cozen O'Connor as bond counsel. Kuzma, 22-0003-I Page 12 5. KLH Engineers as the consulting engineer. 6. DMC as co -bond counsel. 24. On November 30, 2018, a meeting was held between Kuzma, Township Solicitor Matthew Racunas ("Racunas"), and Muscatello at Racunas's office regarding bond refinancing to occur in 2019. a. Muscatello began the process of developing the Preliminary Official Statement for the 2019 bond issuances as of at least December 28, 2018. b. On January 2, 2019, DMC was added to the draft 2019 Series A Preliminary Official Statement as Special Counsel to the Township. Muscatello would not have made these changes unless he had been directed or asked to do so. C. On February 26, 2019, DMC's role in the 2019 Series A Preliminary Official Statement was edited from Special Counsel to the Township to co -bond counsel. 1. Muscatello would not have made these changes unless he had been directed or asked to do so. 25. The Township ran two advertisements in the Mon Valley Independent on March 27, 2019, informing the public of a special meeting to be held on April 3, 2019, regarding the Township's consideration of the Series A and B bond issuances. a. Racunas, the Township Solicitor, requested the April 3, 2019, special meeting per earlier contact with Muscatello. 1. Racunas emailed the Township Manager, Joelle Whiteman ("Whiteman"), on March 20, 2019, asking her to reach out to the Commissioners and inquire if they would be available for a special meeting on Wednesday April 3, 2019, at 6 p.m. 2. Kuzma was cc'd on the above noted email. 26. The advertisements identified Boenning & Scattergood as the underwriter for the potential issuance of the 2019 Series A and B bonds. a. The advertisements were mirrors of one another with the exception of the bond series number. b. The Ordinances under consideration regarding the potential 2019 Series A and B bonds were documented in the advertisements (No. 943 and 944 respectively). Kuzma, 22-0003-1 Page 13 1. The advertisements specified action to be taken by the Board at the April 3, 2019, special meeting or in the alternative no less than 3 days and no more than 30 days from the date of the advertisements. C. Minutes of public Board meetings from January 2019 through March 2019 document no presentations to/discussions by the Board regarding bond issuances and/or any vote to advertise for potential bond issuances. 1. Kuzma, who was President of the Board in 2019, signed all of the public Board meeting minutes from January 2019 through March 2019, confirming their accuracy. 27. The Board held a special meeting on April 3, 2019, at which a presentation was made by Muscatello regarding the refinancing. a. The presentation provided by Muscatello outlined three specific topics as follows: 1. Refund summary of the series of 2009 bonds. 2. Refund summary of the series of 2011 bonds. 3. New money summary. b. The presentation was dated March 4, 2019, but did not occur until April 3, 2019. 1. The March 4, 2019, meeting agenda did not identify a presentation by Muscatello as a subject for the meeting. C. Typically, Muscatello's presentation would have occurred at the meeting prior to the meeting where the vote is taken on whether or not to approve the bonds. 29. At the April 3, 2019, special meeting, immediately after Muscatello's presentation, two separate roll call votes were taken to approve Ordinance Nos. 943 and 944 regarding the 2019 Series A and 2019 Series B bonds in the amounts of up to $9.3 million and up to $10 million, respectively. a. Both motions carried by votes of 6-1 with Commissioner Don Similo objecting. 1. Kuzma was present and voted in favor of the two separate motions involving the 2019 Series A and 2019 Series B bonds. 29. The 2019 Series A and 2019 Series B bonds were issued by the Township in order to provide funds as follows: a. 2019 Series A Kuzma, 22-0003-1 Page 14 1. Refund, on a current basis, all of the Township's outstanding Sewer Revenue Bonds, Series of 2009 in the outstanding principal amount of $6,590,000 plus accrued interest to the date of redemption on May 9, 2019. 2. Fund a portion of the costs of planning, designing, acquiring, constructing and installing various capital improvements to its sewer system in order to comply with a consent order and agreement with the Pennsylvania Department of Environmental Protection. 3. Partially fiend the debt service reserve fund, if necessary. 4. Fund the payment of the costs of issuing and insuring the 2019 Series A bonds. b. 2019 Series B 1. Refund, on a current basis, all of the Township's outstanding Sewer Revenue Bonds, Series of 2011 in the outstanding principal amount of $7,170,000 plus accrued interest to the date of redemption on May 29, 2019. 2. Fund a portion of the costs of plarming, designing, acquiring, constructing, and installing various capital improvements to its sewer system in order to comply with a consent order and agreement with the Pennsylvania Department of Environment Protection, 3. Partially fund the debt service reserve fund, if necessary. 4. Fund the payment of the costs of issuing and insuring the 2019 Series B bonds. C. The Township was required to complete two individual closings due to the fact that two separate bonds were refinanced. 30. On April 5, 2019, two separate advertisements were published in the Mon Valley Independent announcing that the 2019 Series A and Series B bonds had been officially purchased by the Township. a. The advertisement documented that the 2019 Series A and Series B bonds were awarded to Boenning & Scattergood in a private negotiated sale on April 3, 2019. 31. The closings for the 2019 Series A bonds and 2019 Series B bonds occurred on May 9, 2019, and May 28, 2019, respectively. a. Closing Receipt, Closing Statement and Clearing Fund Account Reconciliation documents associated with the 2019 Series A and Series B bonds authorized and directed the Trustee to pay from the Clearing Fund the expenses listed on each issuance's Schedule "B." Kuzma, 22-0003-1 Page 15 1. The Schedule "B" associated with the 2019 Series A and Series B bonds is a document which lists the payment to parties involved in the bond issuance. 32. The Schedule "B" within the Closing Receipt, Closing Statement, and Clearing Fund Account Reconciliation documents for the 2019 Series A and Series B bonds identified the costs of issuance, including payment to DMC, as co -bond counsel, in the amount of $10,000 per bond issuance for a total of $20,000. a. Total payment of $20,000 was made to DMC via wire transfer from BNY Mellon (trustee) on the respective closing dates of May 9, 2019, and May 28, 2019 ($10,000 on each date). 1. Each of the $10,000 wire transfer deposits was made to the Dodaro Cambest Associates, doing business as DMC, IOLTA account. 33. Kuzma attended Duquesne University School of Law from the fall of 2018 through the spring of 2021. a. Kuzma graduated from Duquesne University School of Law on May 17, 2021. b. Kuzma passed the Pennsylvania Bar exam and was admitted to the Pennsylvania Bar on October 18, 2021. 34. DMC traditionally employs, as a practice, law school students to work as law clerks during the summer months after their first year of law school and into subsequent years. a. DMC typically hires law clerks, when needed, from Duquesne University, University of Pittsburgh, or those living in/from the Mon Valley area (a region located south of Pittsburgh). b. DMC generally hires one to two law clerks yearly. 1. DMC has no formal process it follows when hiring summer law clerks. C. Law students commonly pursue law clerking positions following their first year of studies. 35. Individuals retained at DMC for the law clerk positions typically perform tasks assigned by various attorneys at the practice which can include: a. Research, preparation of first drafts of memos, filing paperwork at the courthouse, etc. 36. Law clerks at DMC are typically paid an hourly wage for any work that they complete for DMC. Kuzma, 22-0003-I Page 16 a. DMC law clerks track their time on a time sheet and turn the sheet into Christine Donofrio, the office manager, for processing. 1. The timesheets identify the client's name, the work that was completed by the law clerk, and the time involved. 37. Kuzma and Matta have known one another and maintained a cordial relationship for approximately twenty plus years. a. Kuzma and Matta both lived in the Township. 38. Kuzma talked to Matta about going to law school at some point in time. a. Matta reportedly told Kuzma that after his (Kuzma's) first year of law school he could clerk for DMC. b. Kuzma stayed in touch with Matta throughout law school. 39. Kuzma had knowledge of his pending employment with DMC as a law clerk as early as January 2019. a. Kuzma identified to Whiteman, then -Township Manager, in a text conversation from January 2019 that he had accepted a job with Matta, and he asked her not to tell anybody. 40. Keith Bradley ("Bradley") is a Texas -based attorney who is a current managing partner of Bradley & Hammond Attorneys at Law (`Bradley & Hammond"). a. Bradley & Hammond has offices in Cleburne and Midland, Texas as well as in Pittsburgh, Pennsylvania. 41. Bradley previously operated his own law practice in Texas under the name of Bradley Law Firm. a. Bradley Law Firm had oil and gas clients with interests in various states including Pennsylvania. b. Christi Bradley was the office manager at Bradley Law Firm and currently is the office manager for Bradley & Hammond. 42. Attorney Michael Hammond ("Hammond") is currently a partner at Bradley & Hammond and is based in the firm's Texas office. a. Hammond worked for DMC from 2016 until May 2020 doing civil Iitigation, oil and gas, school district, and municipal work. Kuzma, 22-0003-1 Page 17 43. Attorney Alexandra McCluskey ("McClusky") is currently employed by Bradley & Hammond and is based in the firm's Pittsburgh office. a. McCluskey worked for DMC from December 2017 until around June 2020 doing municipal and oil and gas work. 44. In or around 2016 Bradley and DMC agreed to collaborate for marketing purposes under the identifier of DMC Bradley. a. The purpose of DMC Bradley was to market legal services to oil and gas clients who had business activities in the western Pennsylvania, Ohio, and West Virginia areas. b. Neither "DMC Bradley" nor "Dodaro Matta Cambest Bradley" was ever registered as an entity with the Pennsylvania Department of State Bureau of Corporations and Charitable Organizations. C. There was no formal written agreement between DMC and Bradley. 1. DMC and Bradley shared personnel and other expenses. 2. DMC Bradley had office space inside DMC's Southpointe offices located at 1900 Main Street Suite 207, Canonsburg, PA 15317. d. DMC Bradley had signage which hung in the public hallway outside the office space it shared with DMC. 1. The signage was purchased from and installed by Printscape Imaging and Graphics. aa. Hammond was listed on the Printscape sales order form as the contact and DMC Bradley was listed under the bill to and ship to sections on the order form. bb. Included in the sales order was the installation of the signage at 1900 Main Street Suite 207, Canonsburg, PA 15317, the offices of DMC and DMC Bradley. 45. DMC Bradley did not have any bank account(s) from which client billing, business expenses and/or payroll was processed. a. Clients of DMC Bradley were billed by either Bradley Law Firm or DMC. 1. There were no clients billed under DMC Bradley. 46. DMC Bradley maintained its own internet domain through Google under the name "dmebradley.com." Kuzma, 22-0003-1 Page 18 a. The domain was registered and paid for by Bradley. b. DMC Bradley's domain provided the venture with its own website and email addresses. l . Kuzma had his own email address with DMC Bradley. akuzma c,dmebradipy.com. 2. The domain is no longer active. 47. Individuals working for DMC and/or DMC Bradley prepared individual spreadsheets showing the date, client, and time/hours spent on each client and provided the spreadsheets to DMC Office Manager Christine Donofrio. a. The spreadsheet was used to generate the employee's bi-weekly pay received every other Friday. 1. The bi-weekly pay was received from DMC regardless of whether the work was done for DMC or DMC Bradley. 2. Those working under DMC Bradley received a Form W-2 Wage and Tax Statement from DMC. b. McCluskey and Hammond performed services for both DMC and DMC Bradley. 48. Kuzma completed his first year of law school at Duquesne University in May 2019 and subsequently began performing services as a law clerk for DMC and/or Bradley Law Firm from DMC's Southpointe office location. a. Kuzma acknowledged in January 2019 that he accepted a job with Matta to start in May 2019. b. Kuzma was paid the wage of $15.00 per hour for services performed for DMC and/or Bradley Law Firm. 49. Although Matta had previously made a general statement to Kuzma about clerking at DMC, Matta had concerns on formally employing Kuzma due to Kuzma's position as a Township Commissioner. a. At that time, DMC was working with Bradley Law Firm marketed as DMC Bradley. 50. Matta ultimately contacted Bradley and informed him (Bradley) that he had someone to perform services as a law clerk and that he (Matta) could not use him. a. Bradley agreed to utilize Kuzma as a law clerk in a part-time capacity. Kuzma, 22-0003-I Page 19 1. Bradley agreed to pay Kuzma for all work performed regardless of whether the work was for Bradley Law Firm or DMC. aa. Matta agreed to reimburse Bradley Law Firm for the work that Kuzma completed for DMC which was paid for by Bradley Law Firm. 51. From at least May 2019 through January 2020, Kuzma completed work as a law clerk at DMC's office location and in the field (e.g., courthouses, off -site meetings, etc.), which included work for DMC and its clients. a. Kuzma was directed to perform work for DMC under the guise of employment with Bradley Law Firm. 1. As a law clerk, Kuzma received direction from his supervising attorneys. 2. Kuzma received no direct payment from DMC for work performed for DMC and/or its clients. 3. Kuzma received payment from Bradley Law Firm for work performed. b. Kuzma's 2019 calendar year Statement of Financial Interests identified Keith Bradley and the Township as his only employers. 52. Work performed by Kuzma for DMC was generally documented on invoices generated by Bradley Law Firm which were issued to DMC for reimbursement as detailed below: Invoice Invoice Date Service Total Date I # 7/31/2019 15641 5/28/2019 Contract labor performed May 28-June 7 $1,012.50 6/10/2019 Contract labor performed June IO-June 21, 2019 $1,233.22 $2,245.72 7/9/2019 15626 6/24/2019 Fusion Investments 2hr Prepared Mortgage Satisfaction Pieces $30.00 6/24/2019 Millvale .25hr Conference w/ A. McCloskey $82.50 Millvale 1.25hr Realty transfer tax forms Millvale Ihr Property Search Office 1hr Abacus Ken Hines 2.5hr Initial Evaluation 6/25/2019 Ken Hines 8hr Title Search $120.00 6/26/2019 Ken Hines 6hr Title Search $120.00 Fusion Investments 2hr File Mortgage Satisfaction Pieces at Wa. Co. courthouse Kuzma, 22-0003-I Page 20 Invoice Invoice Date Service Total Date # 6/27/2019 North Versailles Sanitary Authority 3hr pick up and deliver bond does. $97.50 West Mifflin School District 3.5hr review expulsion documents for K. Dimascio 6/28/2019 Ulander Family 3hr write response to Schimizzi letter $120.00 Office 5hr research ambiguous right of way grant for A. McCluskey 7/l/2019 Ken Hines 3.5hr Wa Co. Register of Wills research $112.50 Ken Hines 4hr Draft'fitle Abstract 7/2/2019 Washington City .5hr conference with J. Cambes€ $127.50 Office .5hr call U.S. Military base for A. Selbe Ken Hines 7.5hr draft final title abstract with E. Avon 7/3/2019 Washington City lhr print, compile motion and brief. $105.00 Washington City 2hr file motion and brief at Wa. Co. courthouse Office 4hr A. Selbe marketing research $915.00 7/31/2019 15640 7/8/2019 Family law research for A. Selbe $37.50 7/8/2019 Municipal building lease research $82.50 7/9/2019 Office 3.5 Strength, Weakness, Opportunity, Threat meeting $142,50 Office 3 family law research for A. Selbe Borough of Millvale 1.5 Draft, send letter to Lambo Properties for A, McCluskey Carol Ann Bucar 1.5 Agricultural Security Area Research 7/10/2019 Office 2 research/plan the DMC and DMCBradley website update $120.00 Office 6 begin ambiguous right of way research for presentation for A. McCloskey 7/12/2019 Office 1 ambiguous right of way research DOTO I search of public records $120.00 for tax status Prepare tax comment Carol Ann Bucar i call the PA Dep of Agriculture Borough of White Oak 3.5 Draft Tony Rausch last chance agreement Carol Ann Bucar 1.5 research agricultural security area denial appeal 7/15/2019 Callon DOTO 5 search of public records for tax status $120.00 Prepare tax comment Carol Ann Bucar 2 draft and send summary of research to M. Hammond Halley Date 1 Review DUI file for G. Matta 7/16/2019 Callon DOTO 8 search of public records for tax status $127,50 Prepare tax comment Halley Dale 0.5 call Call with client to complete ARD application 7/17/2019 Office 1.5 follow-up SWOT meeting $127.50 Callon DOTO 5.5 search of public records for tax status Prepare tax comment South Connellsville 1.5 research nuisance caselaw 7/18/2019 Callon DOTO 8 search of public records for tax status $120.00 Prepare tax comment Kuzma, 22-0003-1 Page 21 Invoice Invoice Date Service Total Date It 711912019 Office 1 staff meeting $75.00 Callon DOTO 4 search of public records for tax status Prepare tax comment $1,072.50 8/13/2019 15711 7/22/2019 Conference with A. McCloskey and website update $520.00 Research for K. Dimsacio regarding a Superior Court Criminal Appeal Legal malpractice research for M. Hammond Conference with G. Matta. 7/23/2019 Finish legal malpractice research and draft email to M. Hammond. $120.00 Ethics Commission phone call. RTK exemption research 7/24/2019 Finish legal malpractice research and draft email to M. Hammond. $120.00 Ethics Commission phone call. RTK exemption research 7/24/2019 Travel Expense- 77 miles to Westmoreland County Courthouse $44.66 7/25/2019 Complete 8 Title Searches $120.00 7/26/2019 Complete 8 Title Searches $120.00 7/29/2019 Complete 8 Title Searches $120.00 7/30/2019 Complete 8 Title Searches $120.00 7/31/2019 Complete 8 Title Searches $120.00 $1,404.66 9/4/2019 15723 8/1/2019 Travel to Washington Country Courthouse. $19.14 8/1/2019 Research and compile Mechanics Lien Research. $150,00 Research types, and process of creating a PAC for M. Hammond. Drive to Washington Country Courthouse to research liens on 8 demolitions. 8/12/2019 City of Washington 3hr look up demolition liens at the Washington County $120.00 Courthouse Loius Ruscitto 3hr file mortgage at the Westmoreland County Courthouse City of Washington 2hr compile and complete title search forms. 9/13/2019 City of Washington 7hr finish demolition title searches Carol Ann Bucar 2hr $165.00 research for M. Hammond office 2hr assignment from G. Matta 8/14/2019 Carol Ann Bucar 1.5hr municipal retaliation research for M. Hammond $135.00 Sehaber Family 0.5hr conference with M. Hammond Carol Ann Bucar 21u• research for M. Hammond White Oak Borough 5hr lien research and letter to Attorney Pallone. 8/15/2019 White Oak Borough 6hr draft FPC and IPMC ordinances office 2hr due $165.00 process research for M. Hammond Blairsville School District lhr read G. Matta emails Youngwood 2hr draft one way ordinance. 8/19/2019 Clairton Sewage Authority 8hr easement title research. $120.00 8/21/2019 Office 8hr work on DMC Website $120.00 8/22/2019 Office lhr conference with A. McCluskey about website. Office 0.75hr $131.25 501 c(3). Research for G. Matta. Office 2hr federal due process research for Kuzma, 22-0003-1 Page 22 Invoice Invoice Date Service Total Date # M. Hammond. Belle Vernon 3hr research and modify IPMC Ordinance. White Oak Borough 2hr draft encroachment letter. 9/23/2019 Robinson Township 4hr draft a letter of intent for M, Hammond. Office 4hr $120.00 update website. $1,245.39 10/8/2019 15857 8/30/2019 Carol Ann Bucar compilation of ASA materials for Jefferson The Board $60,00 8/30/2019 Office Website $60.00 9/4/2019 Carol Ann Bucar travel to and attendance of Jefferson Hill meeting. $60.00 9/6/2019 Clairton Municipal Authority travel to Allegheny courthouse and $120,00 completion of title searches. 9/9/2619 Carol Ann Bucar travel to and attendance of Jefferson Hill meeting. $60.00 9/20/2019 Travel to Allegheny courthouse and completion of title searches. $120.00 9/27/2019 Lunch meeting with new client and M. Hammond $30.00 10/4/2019 Research PA nuisance law for M, Hammond in Fayette county $90.00 10/4/2019 Email set up for G, Matta. $30.00 $630.00 11/4/2019 15866 9/6/2019 Parking at Allegheny courthouse $7.00 9/20/2019 Parking at Allegheny courthouse and completion of title searches $7.00 9/27/2019 Lunch fee/ meeting with new client and M. Hammond $56.00 $70.00 2/12/2020 16057 10/10/2019 Conference call with staff regarding upcoming projects $7.50 10/11/2019 Conference call with A. McCloskey regarding stormwater issue $7.50 10/11/2019 Conference with M. Hammond regarding Fayette county nuisance issue $7.50 10/12/2019 Escalante- legal research about stormwater issues $112.50 10/12/2019 Legal research about Fayette nuisance issue $15.00 10/13/2019 Hile- legal research about Fayette nuisance issue $15.00 10/16/2019 Escalante- draft memo to A. McCluskey about water issue $60.00 10/18/2019 Clairton Sanitary- research about answering a declaratory judgement filing $15.00 10/18/2019 Hile- legal research about Fayette nuisance issue $105.00 10/20/2019 Hile- draft TRO motion and injunction complaint $120.00 10/24/2019 Hile- finalize and send motion and complaint to M. Hammond $15.00 Kuzma, 22-0003-1 Page 23 Invoice Date Invoice # Date Service Total l 0/25/2019 WMSD 8hr title searches for potential sale of property $120.00 11/1/2019 WMSD 8hr finish title searches and find misrecorded deed $120,00 11/8/2019 WMSD 8hr type/compile title searches and print for J. Dalfonso $120.00 11/14/2019 WMSD 8hr begin title searches for 5 missing deeds $120.00 11/15/2019 WMSD 8hr plot 5 new deed descriptions with Allegheny Co. Mapping $120.00 dept. 12/16/2019 White Oak Borough File Lien Satisfaction $30.00 12/16/2019 Parking expense for Oct/Nov 2019 $35.00 1/24/2020 Purchasing title opinion editing 29-009-003 Mark Avery $75.00 1/28/2020 Carol Ann Bucar $60.00 1/28/2020 Carol Ann Bucar $105.00 1/28/2020 Parking for Carol Ann Bucar 1/28/20 and 1/31120 $14.00 1/28/2020 Carol Ann Bucar Copies $15.00 $1,414.00 a. Invoices submitted by Bradley Law Firm to DMC for reimbursement of wages paid to Kuzma totaled $8,997.27. I . Accounting errors on various invoices resulted in Kuzma receiving $625.55 less than what was documented on the invoices from Bradley Law Firm as follows: Invoice ## Invoice Amount Amount Paid Difference 15626 $915.00 $958A5 +$43.45 15711 $1,404.66 $1,173.80-$230.86 15723 $1,245.39 $1,076.25-$169.14 16057 $1,414.00 $1,145.00-$269.00 Totals 4625.55 b. Based on the description of services performed by Kuzma listed on his timesheets, Kuzma received payment for work performed for DMC clients. 1. Kuzma generated the descriptions of services he performed on his timesheets. 53. Kuzma maintains a personal joint checking account with his spouse, Hannah Kuzma ("H. Kuzma"), at Huntington Bank. a. Kuzma opened the account on August 11, 2014. 1. Kuzma was the sole authorized signatory. b. H. Kuzma was added as an owner to the account on October 1, 2021. Kuzma, 22-0003-1 Page 24 1. Kuzma and H. Kuzma are the only authorized signatories on the account. 54. Kuzma received nine separate checks from Bradley Law Firm totaling $8,371.72 for work performed for DMC/DMC clients over the range of May 2019 through January 2020. Check Check Check Deposit # Date Payor Payee Amount Date Disposition 1779 6/24/2019 Bradley Law Firm Attorneys at Law Andrew Kuzma $1,233.22 7/5/2019 Dep Acet X1032 1780 6/24/2019 Bradley Law Firm Attorneys at Law Andrew Kuzma $1,012.50 7/5/2019 Dep Acct X1032 1823 7/9/2019 Bradley Law Firm Attorneys at Law Andrew Kuzma $958.45 7/18/2019 Dep Aect X1032 1836 7/31/2019 Bradley Law Firm Attorneys at Law Andrew Kuzma $1,072.50 8/t2/2019 Dep Aect X1032 1846 8/13/2019 Bradley Law Firm Attorneys at Law Andrew Kuzma $1,173.80 8/26/2019 Dep Acct X1032 1906 10/l/2019 Bradley Law Firm Attorneys at Law Andrew Kuzma $630.00 i0/21/2019 Dep Acet X1032 1938 11/1/2019 Bradley Law Firm Attorneys at Law Andrew Kuzma $1,076.25 11/8/2019 Dep Aect X1032 1939 11/4/2019 Bradley Law Firm Attorneys at Law Andrew Kuzma $70.00 11/12/2019 Dep Acet X1032 2042 2/12/2020 Bradley Law Firm Attorneys at Law Andrew Kuzma $1,145.00 2/19/2020 Dep Aect X1032 $8,371.72 a. All of the checks Kuzma received from Bradley Law Firm were deposited into Kuzma's account at Huntington Bank. 55. DMC issued Bradley Law Firm at least one DMC business check from its account at PNC Bank in the amount of $6,493.27 for wages paid by Bradley Law Firm to Kuzma for work involving DMC and/or DMC clients as detailed below; Check # Check Date Payee Amount 16714 1.0/17/2019 Bradley Law Firm $6,483.27 a. The total of $6,483.27 equals the total of Bradley Law Firm invoices 15641, 15626, 15640, 15711, and 15723 to DMC, minus the cumulative accounting errors on invoice numbers 15711 and 15723 in the amount of $400.00. 56. Check number 16714 from DMC's business account was deposited into a Bradley Law Firm account with Affiliated Bank, N.A. on October 24, 2019. 57. The timeline of events which are applicable to Kuzma's employment with DMC and the subsequent use of DMC as co -band counsel in relation to the refinancing of the 2019 Series A and Series B bonds are as follows: a. November 30, 2018: Meeting held between Kuzma, Racunas, and Muscatello at Racunas's office regarding bond refinancing to occur in 2019. b. December 28, 2018: Muscatello saved an early version of what would become the Preliminary Official Statement for the 2019 bond issuance. Kuzma, 22-0003-I Page 25 Muscatello saved the Preliminary Official Statement from the Series 2017 Township bond issuance as a template for the 2019 Series A bond refinance Preliminary Official Statement. C. January 2, 2019: Muscatello adds DMC as Special Counsel to the Township on the 2019 Series A bond refinance Preliminary Official Statement. d. January 7, 2019: Kuzma is elected as President of the Board. e. January 29, 2019: Kuzma texts Whiteman, informing her that he accepted a job with Matta and begins his employment in May 2019. f. February 26, 2019: Muscatello changes DMC to Co -Bond Counsel on the 2019 Series A bond refinance Preliminary Official Statement. g. April 3, 2019: Muscatello presents before the Board at a special meeting regarding the 2019 Series A and Series B bonds and the vote is taken to approve the Ordinances regarding the 2019 Series A and Series B bonds. Kuzma was present at the meeting and voted in favor of the Ordinances. h. May 9, 2019. Closing date for the 2019 Series A bond. Parties involved in the bond actions, including DMC as co -bond counsel, were issued payment for their services on the date of closing. i. May 28, 2019: Closing date for the 2019 Series B bond. 1. Parties involved in the bond actions, including DMC as co -bond counsel, were issued payment for their services on the date of closing. j. May 28, 2019: Kuzma's first documented cleric services performed for DMC. lc. July 5, 2019: Kuzma's receipt of the first of nine checks from Bradley Law Firm issued for work completed for DMC over the time period of May 28, 2019, through January 31, 2020. 1. October 17, 2019: DMC business check generated in the amount of $6,483.27 to reimburse Bradley Law Firm for work Kuzma performed for DMC clients/attorneys. m. July 18, 2020: Kuzma filed his 2019 calendar year Statement of Financial Interests reporting "Attorney Keith Bradley, 1600 Main Street, Cannonsburg, PA" as a source of income. Kuzma, 22-0003-I Page 26 JJt� 0� S1OV 0% GGA9 yJ� �0t Co toe �g ocd the ti9 cod tot�edst 20 pies as o� Dodaro, Matta & Cambest Kuzma The Board President; votes to approve 2019 hnnrk Elizabeth Township 2019 Bonds. ❑odara, Matta & Cambest reimbursed Bradley Law Firm for work Kuzma did for Dodara, Matta & Cambest attorneys and clients in the summer of 2019. DMC Bradley Bradley Law Firm Joint Venture for purposes for PA Oil and Gas clients. A On September S, 2023, Kuzma met with and provided a statement to Commission Investigators regarding the allegations during which Kuzma stated in part the following: a. On November 30, 2018, Kuzma met with Racunas and Muscatello in Racunas's office for the purposes of educating Kuzma on bonds/bond issuances and to discuss the ultimate 2019 Series A and B bonds. b. Kuzma sent the January 29, 2019, text informing Whiteman that he had taken a job with Matta with the belief that Whiteman would disclose the content of Kuzma's text to Racunas in an effort to influence an improvement in Racunas's performance as Township Solicitor as Kuzma had concerns regarding Racunas's service. C. Kuzma was aware that DMC was to receive payment in the total amount of $20,000 for DMC's role as co -bond counsel in the 2019 Series A and B bonds at the time Kuzma voted in favor of the bond Ordinances. Kuzma, 22-0003-1 Page 27 d. Kuzma was unaware of the arrangement between DMC and Bradley regarding DMC's reimbursement of Kuzma's wages to Bradley. 59. As a result of actions taken as a Member of the Board, Kuzma realized a private pecuniary benefit totaling at least $9,371.72 when he voted to approve the issuance/refunding of the 2019 Series A and B Township bonds which included payments to Matta of DMC, as co - bond counsel, at a time when Kuzma had accepted employment with said business. THE FOLLOWING RELATES TO KUZMA FAILING TO TIMELY FILE AND FILE COMPLETE STATEMENTS OF FINANCIAL INTERESTS AND KUZMA BACKDATING A STATEMENT OF FINANCIAL INTERESTS TO GIVE THE IMPRESSION THAT IT HAD BEEN TIMELY FILED. 60. Statement of Financial Interests ("SFI") filing requirements for public officials and public employees are mandated by Section 1104 of the Ethics Act. a. Section 1104(a) reads, in pant, as follows; "...Any other public employee or public official shall file a statement of financial interests with the governing authority of the political subdivision by which he is employed or within which he is appointed or elected no later than May 1 of each year that he holds such a position and of the year after he leaves such a position." 61. Kuzma was required to file SFIs by May 1" annually for calendar years 2017 through 2021 in his position as a Township Commissioner. 62. Information required to be disclosed on SFIs filed by public officials and public employees is specified in Section 1105 of the Ethics Act and includes in part the following: a. Section 1105(a) sets forth, in part, that all information requested on the SFI shall be provided to the best knowledge, information, and belief of the person required to file and shall be signed under oath or equivalent affirmation. b. Section 1105(b), Subsections 1-10 identify specific information to be disclosed as well as exceptions to disclosure requirements when applicable. 1. Section 1105(b)(1) mandates disclosure of the public official's name, address, and public position. 2. Section 1105(b)(8) mandates the disclosure of any office, directorship, or employment of any nature whatsoever in any business entity. 3. Section 1105(b)(9) mandates the disclosure of any financial interest in any legal entity engaged in business for profit. Kuzma, 22-0003-1 Page 28 63. An SFI compliance review was conducted at the Elizabeth Township Municipal Building on August 5, 2022. a. Kuzma filed SFIs as a Township Commissioner for calendar years 2017-2021 as detailed below. Calendar 5ienature Year Date Form Print Date 2017 7/16/2018 SEC-] REV, 01/17 2018 3/5/2018 SEC-1 REV. 01/19 2018 3/12/2019 SEC -I REV. 0 1/ 17 2019 7/18/2020 SEC-1 REV. 01/20 2020 1/1/2021 SEGI REV. 01122 2021 1/15/2022 SEC-1 REV. 01/22 b. Printed on the bottom of the form near the signature section is the following: "this form is considered deficient if any block above is not completed." 64. Kuzma failed to provide all requested information on his amended 2018 calendar year SFI, his 2020 calendar year SFI, and his 2021 calendar year SFI. a. 2018 calendar year: 1. The amended filing box on Kuzma's 2018 calendar year amended SFI was blank. b. 2020 calendar year: 1. Kuzma failed to identify his then -current public office as a Commissioner in Box 4. aa. Kuzma identified his public office as Solicitor in Box 4. Kuzma had not yet graduated law school, passed the Pennsylvania Bar exam, or obtained admission to the Pennsylvania Bar at the time his 2020 calendar year SFI was filed. 2. Kuzma failed to identify the Township as his political subdivision in Box 5. aa. Kuzma's SFI documented "See Attached" in Box 5. i. There was no attachment to Kuzma's 2020 calendar year SFI. C. 2021 calendar year: Kuzma, 22-0003-I Page 29 1. Kuzma failed to identify his public office status in Box 3. aa. Kuzma incorrectly documented his filing status as Solicitor. i. Kuzma has never served as Solicitor for the Township. 2. Kuzma failed to identify his prior public office as a Commissioner in Box 4. aa. Kuzma identified his public office as Solicitor in Box 4. i. Kuzma has never served as Solicitor for the Township. 3. Kuzma failed to identify the Township as his political subdivision in Box 5. aa. Kuzma's SFI documented "See Attached" in Box 5. i. The Township is not identified on the attached document. 65. Kuzma failed to identify his office, directorship, or employment with Pattis Pasticceria in Section 13, Office, Directorship, or Employment in any Business, on his 2017 and 2018 calendar year SFIs. a. Kuzma disclosed Pattis Pasticceria as a direct/indirect source of income on his 2017 and 2018 calendar year SFIs. b. Section 13 on Kuzma's 2017 and 2018 calendar year SFIs was marked "None." 66. Kuzma failed to complete Box 14, Financial Interest in any Legal Entity in Business for Profit, on his 2020 and 2021 calendar year SFIs. a. Box 14 was blank on Kuzma's 2020 and 2021 calendar year SFIs. 67. The Pennsylvania State Ethics Commission ("Commission") annually contracts for the printing of blank SFIs. a. Orders for forms are generally placed with the printing company in December for each year. b. The ordered forms are received by the Administrative Division of the Commission and governmental entities in December, prior to January 1 of the filing year. 1. The printing company directly distributes the forms to all government entities to which forms cannot be delivered through interstate mail. Kuzma, 22-0003-1 Page 30 68. Although the annual filing deadline is May 1, filing deadline requirements were altered by the Commission for calendar year 2019 and calendar year 2020 filings due to the COVID- 19 pandemic. a. Due to the COVID-19 pandemic, the Commission extended the statutory filing deadline of May 1, 2020, to July 15, 2020, for calendar year 2019 filings. b. Due to the COVID-19 pandemic, the Commission extended the statutory filing deadline from May 1, 2021, to June 1, 2021, for calendar year 2020 filings. 69. Either Joelle Whiteman ("Whiteman") or Greg Butler ("Butler"), as the Office Manager for the Township, distributed the SFIs to the Township Commissioners, including Kuzma, from 2017 through 2021. a. Whiteman was the Office Manager from September 18, 2017, through December 11, 2020. b. Butler was the interim Township Manager from October 2020 until January 2021 and then the Township Manager from February 2021 to present. 70. Once the SFIs were received by the Township, Whiteman/Butler provided a blank SFI to each Commissioner in his/her packet for completion. a. Whiteman told the Commissioners the date she needed the completed form. 1. It is the responsibility of each individual Commissioner to accurately complete the form and file it with the Township. b. Whiteman sent at least one email reminder and gave additional verbal reminders to those who did not turn in their SFIs by the designated date. 71. On April 22, 2021, Butler emai led Kuzma, reminding him (Kuzma) to turn in his SFI for calendar year 2020 before May 1, 2021. a. Kuzma did not reply to Butler's email. b. Kuzma had not filed his 2020 calendar year SFI with the Township as of April 22, 2021. 72. Kuzma intentionally backdated his calendar year 2020 SFI. a. Kuzma's SFI for the Township for calendar year 2020 contained an execution/completion date of January 1, 2021, which was factually impossible based on the form as it was filed using a 2022 SFI form. 1. SEC-1, Rev. 01/22 forms were not mailed to the Township until December 28, 2021, at the earliest. Kuzma, 22-0003.1 Page 31 b. Kuzma's backdating of his 2020 calendar year SFI filing created the impression that the form was timely filed. C. Kuzma affirmed that the information on his 2020 calendar year SFI was true and correct to the best of his knowledge, information, and belief subject to penalties prescribed by 18 Pa. C.S. § 4904 (unsworn falsification to authorities) and the Public Official and Employee Ethics Act via signing and dating the form. d. Instructions accompanying the SFI clearly state to sign the form using the current date, and to not backdate the form. 7 41 YUA iNt Tsd t, s•wr �+++a M«w,«ae� 44af0i�iG' t*vtg Ir .:::::::' n+a"+gat ,�v'Ur--x ' U J � 3.� m rD rr.0 t tom+ _W4-WA tz 00W iw VAk to L4—Ao" (- tit TRIO 11.54919 {C0041 7k#a wkilut 6f A6AY *f.0" A**Vt M MV G P"itF{p. idAliF A €t1�'i€-t'OR Yt9t�ei i6i@4'tiBF�#. Kuzma, 22-0003-1 Page 32 III. DISCUSSION: As a Member of the Elizabeth Township ("Township") Board of Commissioners from January 4, 2016, until December 23, 2021, Respondent Andrew Kuzma ("Kuzma") was a public official subject to the provisions of the Public Official and Employee Ethics Act ("Ethics Act"), 65 Pa.C.S. § 1101 et sec^. The allegations are that Kuzma violated Sections 1103(a), 1104(a), 1105(a), 1105(b)(1), 1105(b)(9), and I I05(b)(9) of the Ethics Act: (1) When he participated in actions including, but not limited to, when he voted to approve the issuance/refunding of two bonds for the Township which included payments to Gary Matta of Dodaro, Matta & Cambest P.C., a business from which he was seeking and subsequently accepted employment; (2) When he filed deficient Statements of Financial Interests ("SFIs") for calendar years 2017, 2018, and 2019 by failing to list his employment in any business; (3) When he filed a deficient SFI for calendar year 2018 by failing to mark that he was amending an original filing; (4) When he filed deficient SFIs for calendar years 2020 and 2021 by failing to list his public position and governmental entity, and by failing to answer whether he had any financial interest in any legal entity engaged in business for profit; and (5) When he failed to timely file an SFI for calendar year 2020 and subsequently backdated that filing to give the impression that the form was timely filed. Per the Consent Agreement, the Investigative Division has exercised its prosecutorial discretion to nolle pros the allegation pertaining to Section 1104(a) as well as the allegations pertaining to deficiencies in Kuzma's SFIs for calendar years 2017 through 2021. We therefore need not address those allegations. Pursuant to Section 1103(a) of the Ethics Act, a public official/public employee is prohibited from engaging in conduct that constitutes a conflict of interest: § 1103. Restricted activities (a) Conflict of interest. No public official or public employee shall engage in conduct that constitutes a conflict of interest. 65 Pa.C.S. § 1103(a). The following terms relevant to Section 1103(a) are defined in the Ethics Act as follows: Kuzma, 22-0003-I Page 3 3 § 1102. Definitions "Conflict" or "conflict of interest." Use by a public official or public employee of the authority of his office or employment or any confidential information received through his holding public office or employment for the private pecuniary benefit of himself, a member of his immediate family or a business with which he or a member of his immediate family is associated. The term does not include an action having a de minimis economic impact or which affects to the same degree a class consisting of the general public or a subclass consisting of an industry, occupation or other group which includes the public official or public employee, a member of his immediate family or a business with which he or a member of his immediate family is associated. 65 Pa.C.S. § 1102. Subject to the statutory exclusions to the Ethics Act's definition of the term "conflict" or "conflict of interest," 65 Pa.C.S. § 1102, pursuant to Section 1103(a) of the Ethics Act, a public official/public employee is prohibited from using the authority of public office/employment or confidential information received by holding such a public position for the private pecuniary (financial) benefit of the public official/public employee himself, any member of his immediate family, or a business with which he or a member of his immediate family is associated. Section 1105(a) of the Ethics Act provides that the SFI shall be filed on the form prescribed by this Commission; that all information requested on the form shall be provided to the best of the knowledge, information and belief of the filer; and that the form shall be signed under oath or equivalent affirmation. As noted above, the parties have submitted a Consent Agreement and Stipulation of Findings. The parties' Stipulated Findings are set forth above as the Findings of this Commission. We shall now summarize the relevant facts as contained therein. Kuzma served as a Township Commissioner from January 4, 2016, until December 23, 2021, when he voluntarily resigned due to not residing in the ward which he represented. Kuzma served as President of the Township Board of Commissioners (`Board") from January 7, 2019, until January 6, 2020. The Board is composed of seven Members. In Pennsylvania, municipal entities may issue bonds to fund day-to-day obligations, finance capital projects, and refund existing debt. The issuance of municipal bonds involves the participation of multiple parties, including, in pertinent part, the issuer of the bonds, the solicitor, and bond counsel. The solicitor represents the issuer in the process. The issuer has the final decision as to the selection of bond counsel, which is an attorney or firm retained by the issuer to work with the solicitor on the legal aspects of the issuance of the bonds. Kuzma, 22-0003-1 Page 34 Once issued, municipal bonds can be refunded to reduce the issuer's interest costs. Refunding entails a procedure whereby an issuer refinances the outstanding bonds by issuing new bonds. The proceeds of the new bonds are either deposited in escrow to pay the debt services on the outstanding bonds or used promptly to retire the outstanding bonds. Between 2003 and 2013, the Elizabeth Township Sanitary Authority, which owned and operated the Township sewer system, issued four series of municipal bonds. In December 2013, the Township dissolved the Elizabeth Township Sanitary Authority and absorbed its assets, obligations, and liabilities. The Township issued its own series of municipal bonds in 2011 and 2017. The law firm of Dodaro, Matta & Cambest P.C. ("DMC") serves a broad range of government and private clients in diverse matters and serves as the Solicitor for multiple local municipalities and school districts in western Pennsylvania. Gary Matta, Esquire ("Matta") is a partner in DMC. Since approximately July 2016, DMC has maintained its office in Canonsburg, Pennsylvania. Kuzma and Matta have known each other and maintained a cordial relationship for approximately twenty plus years. Kuzma began attending Duquesne University School of Law in the fall of 2018, and at some point, he talked to Matta about going to law school. Matta reportedly told Kuzma that after his first year of law school he could be a law clerk for DMC, which traditionally employs law school students to work as Iaw clerks during the summer months after their first year of law school. As early as January 2019, Kuzma had knowledge of his pending employment with DMC as a law clerk. In a text conversation with Township Manager Joelle Whiteman in January 2019, Kuzma told her that he had accepted a job with Matta, and he asked her not to tell anybody. Since at least 2008, the Township had used Boenning & Scattergood, an investment bank, for bond underwriting services. As of at least late 2018/early 2019, Joseph Muscatello ("Muscatello"), Managing Director, Public Finance, of Boenning & Scattergood, initiated contact with the Township regarding potential interest in financial savings associated with the reissuance of existing bonds. The Township subsequently began consideration of the refinancing of existing sewer bond debt with the issuance of new bonds. On November 30, 2018, Kuzma, the Township Solicitor, and Muscatello held a meeting with regard to bond refinancing to occur in 2019. As of at least December 28, 2018, Muscatello began the process of developing a Preliminary Official Statement for the issuance of 2019 Series A and B bonds. On January 2, 2019, DMC was added to a draft Preliminary Official Statement as Special Counsel to the Township. DMC's role in the draft Preliminary Official Statement was subsequently edited from Special Counsel to the Township to co -bond counsel. On March 27, 2019, the Township ran two advertisements in the Mon Valley Independent to inform the public of a special meeting to be held on April 3, 2019, regarding the Township's consideration of Ordinance No. 943 and Ordinance No. 944 regarding the potential issuance of the 2019 Series A and the 2019 Series B bonds, respectively. Kuzma, 22-0003-1 Page 35 At the Board's special meeting on April 3, 2019, Muscatello made a presentation regarding the refinancing of outstanding Township sewer revenue bonds issued in 2009 and 2011. After Muscatello's presentation, two separate roll call votes were taken by the Board to approve Ordinance No. 943 regarding the 2019 Series A bonds and Ordinance No. 944 regarding the 2019 Series B bonds in the amounts of up to $9.3 million and up to $10 million, respectively. Each motion carried by a vote of 6-1, with Kuzma voting in favor of the motion. At the time that Kuzma voted in favor of the two Ordinances, he was aware that DMC was to receive payment in the total amount of $20,000 for its role as co -bond counsel in the issuance of the 2019 Series A and B bonds. As part of the bond issuance process, the closings for the 2019 Series A bonds and the 2019 Series B bonds occurred on May 9, 2019, and May 28, 2019, respectively. The schedule "B" within the Closing Receipt, Closing Statement, and Clearing Fund Account Reconciliation documents for the 2019 Series A and Series B bonds identified the costs of issuance, which included payment to DMC, as co -bond counsel, in the amount of $10,000 per bond issuance. DMC was paid a total of $20,000 in relation to the issuance of the 2019 Series A and Series B bonds. Keith Bradley, Esquire (`Bradley") operated a law practice under the name of Bradley Law Firm. In or around 2016 Bradley and DMC agreed to collaborate for marketing purposes under the identifier of DMC Bradley. The purpose of DMC Bradley was to market legal services to oil and gas clients who had business activities in western Pennsylvania, Ohio, and West Virginia. DMC Bradley had office space inside DMC's office, and DMC Bradley's clients were billed by either Bradley Law Firm or DMC. Individuals who worked for DMC or for DMC Bradley received their pay from DMC. Although Matta had previously made a general statement to Kuzma about clerking at DMC, Matta had concerns about formally employing Kuzma due to his position as a Township Commissioner. After Matta informed Bradley that he had someone to perform services as a law clerk but could not Use him, Bradley agreed to utilize Kuzma as a law clerk in a part-time capacity. Bradley and Matta agreed that Bradley would pay Kuzma for all the work he performed regardless of whether the work was for Bradley Law Firm or DMC and that Matta would reimburse Bradley Law Firm for paying Kuzma for work completed for DMC. After Kuzma completed his first year of law school in May 2019, he began performing services as a law clerk for DMC and Bradley Law Firm at DMC's office. Kuzma was paid $15.00 per hour for his services. From at least May 2019 through January 2020, Kuzma completed work as a law clerk that included work for DMC. Kuzma was directed to perform work for DMC under the guise of employment with Bradley Law Firm. During that time frame, Kuzma received nine checks totaling $8,371.72 from Bradley Law Firm for work he performed for DMC. DMC issued at least one check to Bradley Law Firm to reimburse it for wages that it paid to Kuzma for work he performed for DMC. Kuzma's SFI for Calendar Year 2020 Kuzma, 22-0003-I Page 36 Each year this Commission contracts for the printing of blank SFI forms. The printed SFI forms are received by the Administrative Division of this Commission in December, prior to January 1 of the filing year. Each year the printed forms bear a revision number that corresponds with the year in which the forms are to be filed. As an example, printed forms bearing the revision number SEC-1, Rev. 01/22 were printed to be used for SFI filings required to be made in 2022. Instructions accompanying the printed forms clearly state to sign the form, to enter the current date, and to not backdate the form. As a Township Commissioner, Kuzma was required to annually file an SFI by May 1, An SFI compliance review was conducted at the Township Municipal Building on August 5, 2022. Kuzma's SFI form for calendar year 2020 was dated January 1, 2021, and bore the revision number of SEC-1, Rev. 01/22. It was impossible for Kuzma to have completed the SFI form on the date purported because the SEC-], Rev. 01/22 form was not printed and distributed until December 28, 2021, at the earliest. Having highlighted the Stipulated Findings and issues before us, we shall now apply the Ethics Act to determine the proper disposition of this case. The parties' Consent Agreement sets forth a proposed resolution of the allegations as follows: 3. The Investigative Division will recommend the following in relation to the above allegations: a. That a violation of Section 1103(a) of the Public Official and Employee Ethics Act, 65 Pa.C.S. § 1103(a), occurred when Kuzma participated in actions including, but not limited to, voting to approve the issuance/refunding of two (2) bonds for Elizabeth Township which included payments to Gary Matta of Dodaro, Matta, & Cambest P.C., a business from which he was seeking and subsequently accepted employment. b. That a violation of Section 1105(a) of the Public Official and Employee Ethics Act, 65 Pa.C.S. § 1105(a), occurred when Kuzma failed to timely file a Statement of Financial Interests for calendar year 2020 and subsequently backdated that filing to give the impression that the form was timely filed. C. That the remaining allegations are nolle prossed. 4. Kuzma agrees to make payment in the amount of $3,000.00 in settlement of this matter payable to the Commonwealth of Pennsylvania, and forwarded to the Pennsylvania State Ethics Kuzma, 22-0003-1 Page 37 Commission, within thirty (30) days of the issuance of the final adjudication in this matter. S. Kuzma agrees to file complete and accurate amended Statements of Financial Interests with Elizabeth Township, through the Pennsylvania State Ethics Commission, for calendar years 2017- 2021 within thirty (30) days of the issuance of the final adjudication in this matter. 6. Kuzma agrees to not accept any reimbursement, compensation or other payment from Elizabeth Township representing a full or partial reimbursement of the amount paid in settlement of this matter. 7. The Investigative Division will recommend that the State Ethics Commission take no further action in this matter and make no specific recommendations to any law enforcement or other authority to take action in this matter. Such, however, does not prohibit the Commission from initiating appropriate enforcement actions in the event of Kuzma's failure to comply with this agreement or the Commission's order or cooperating with any other authority who may so choose to review this matter further. a. Kuzma has been advised that as a matter of course, all orders from the Commission are provided to the Attorney General, albeit without any specific recommendations pursuant to Paragraph 7 above. b. Kuzma has been advised that all orders become public records and may be acted upon by law enforcement as they deem appropriate. C. The non -referral language contained in this paragraph is considered an essential part of the negotiated Consent Agreement. Consent Agreement, at 1-2. We accept the recommendation of the parties for a finding of a violation of Section I I03(a) of the Ethics Act. The Consent Agreement reflects the parties' agreement that the elements of a use of the authority of office for a private pecuniary benefit have been established. It is clear that Kuzma used the authority of his public position as a Township Commissioner when he voted to approve the two Ordinances pertaining to the Township's issuance of the 2019 Series A and B bonds, which were to be issued to refund outstanding Township sewer revenue bonds. It is further clear that at the time Kuzma took official action with respect to the Ordinances, he knew that: (1) DMC was acting as co -band counsel for the Township in the issuance of the bonds; (2) DMC was to receive $20,000 for acting as co -bond counsel; and (3) he had employment pending as a law Kuzma, 22-0003-1 Page 38 cleric with DMC. Kuzma was subsequently employed as a law clerk, and he was paid a total of $8,371.72 for work that he performed for DMC. Based upon the Stipulated Findings and Consent Agreement, we hold that a violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), occurred when Kuzma participated in actions, including but not limited to voting, to approve the issuance/refunding of two bonds for the Township which included payments to Matta of DMC, a business from which he was seeking and subsequently accepted employment. We further agree with the parties, and we hold, that a violation of Section 1105(a) of the Ethics Act, 65 Pa.C.S. § 1105(a), occurred when Kuzma failed to timely file an SFI for calendar year 2020 and subsequently backdated that filing to give the impression that the form was timely filed. As part of the Consent Agreement, Kuzma has agreed to make payment in the amount of $3,000.00 payable to the Commonwealth of Pennsylvania and forwarded to this Commission within thirty (30) days of the issuance of the final adjudication in this matter. Kuzma has further agreed to not accept any reimbursement, compensation or other payment from the Township representing a full or partial reimbursement of the amount paid in settlement of this matter. Kuzma had additionally agreed to file complete and accurate amended SFIs for calendar years 2017 through 2021 with the Township, through this Commission, within thirty (30) days of the issuance of the final adjudication in this matter. We agree that the aforesaid recommendations are appropriate, including the recommendation that Kuzma file complete and accurate amended SFIs for calendar years 2017 through 2021 notwithstanding the nolle pros as to the allegations regarding deficiencies in his SFIs for the aforesaid calendar years. Accordingly, per the Consent Agreement of the parties, Kuzma is directed to make payment in the amount of $3,000.00 payable to the Commonwealth of Pennsylvania and forwarded to this Commission by no later than the thirtieth (30ih) day after the mailing date of this adjudication and Order. Kuzma is directed to not accept any reimbursement, compensation or other payment from the Township representing a full or partial reimbursement of the amount paid in settlement of this matter. To the extent he has not already done so, Kuzma is directed to file complete and accurate amended SFIs for calendar years 2017 through 2021 with the Township, through this Commission, by no later than the thirtieth (301h) day after the mailing date of this adjudication and Order. Compliance with the foregoing will result in the closing of this case with no further action by this Commission. Noncompliance will result in the institution of an order enforcement action. j,'Lu ma, 22-0003-I Page 39 IV. CONCLUSIONS OF LAW: 1. As a Member of the Elizabeth Township ("Township") Board of Commissioners from January 4, 2016, until December 23, 2021, Respondent Andrew Kuzma ("Kuzma") was a public official subject to the provisions of the Public Official and Employee Ethics Act ("Ethics Act"), 65 Pa.C.S. § 1101 et sew. 2. A violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), occurred when Kuzma participated in actions, including but not limited to voting, to approve the issuance/refunding of two bonds for the Township which included payments to Gary Matta of Dodaro, Matta & Cambest P.C., a business from which he was seeking and subsequently accepted employment. 3. A violation of Section 1105(a) of the Ethics Act, 65 Pa.C.S. § 1105(a), occurred when Kuzma failed to timely file a Statement of Financial Interests for calendar year 2020 and subsequently backdated that, filing to give the impression that the form was timely filed. In Re: Andrew Kuzma, File Docket: 22-0003-I Respondent Date Decided: 4/9/24 Date Mailed: 4/12/24 ORDER NO. 1832 A violation of Section 1103(a) of the Public Official and Employee Ethics Act ("Ethics Act"), 65 Pa.C.S. § 1103(a), occurred when Andrew Kuzma, as a Member of the Elizabeth Township ("Township") Board of Commissioners, participated in actions, including but not limited to voting, to approve the issuance/refunding of two bonds for the Township which included payments to Gary Matta of Dodaro, Matta & Cambest P.C., a business from which he was seeking and subsequently accepted employment. 2. A violation of Section 1105(a) of the Ethics Act, 65 Pa.C.S. § 1105(a), occurred when Kuzma failed to timely file a Statement of Financial Interests for calendar year 2020 and subsequently backdated that filing to give the impression that the form was timely filed. 3. Per the Consent Agreement of the parties, Kuzma is ordered to make payment in the total amount of $3,000.00 by no later than the thirtieth (30th) day after the mailing date of this Order, by utilizing the Commission's electronic payment system or by forwarding to this Commission a certified check or money order in the amount of $3,000.00 made payable to the Commonwealth of Pennsylvania, for deposit in the State Treasury. 4. Kuzma is directed to not accept any reimbursement, compensation or other payment from the Township representing a full or partial reimbursement of the amount paid in settlement of this matter. To the extent he has not already done so, Kuzma is directed to file complete and accurate amended Statements of Financial Interests for calendar years 2017 through 2021 with the Township, through this Commission, by no later than the thirtieth (301h) day after the mailing date of this Order. 6. Compliance with paragraphs 3, 4, and 5 of this Order will result in the closing of this case with no further action by this Commission. a. Non-compliance will result in the institution of an order enforcement action. BY THE COMMISSION, #( A Michael A. Sch ai , Chair